Year:2004 (amended 2006, 2008, 2009 and 2010)
Policy status:Superseded
Date Effective:2004 (amended 2006, 2008, 2009 and 2010)
Date Ended:31 December 2008
Policy Type:Regulatory Instruments>Codes and standards
Renewable Energy Policy Targets:Wind, Onshore
Policy Sector:Electricity
Agency:Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Legal References:Erneuerbare-Energien-Gesetz Federal Law Gazette on 31 JulyPress release BMU No 231/04
Renewable Energy Description:

The Act of 2004 replaces the Renewable Energy Sources Act of 2000 while maintaining the prior acts general principals. The Renewable Energy Sources Act was amended on 1 August 2004 to increase the share of renewable energies in the total electricity supply to at least 12.5% by the year 2010 and to at least 20% by the year 2020. It also aims to further develop renewable technologies for the generation of electricity, thus contributing to a reduction in costs. The EEG amendment also assists the implementation of the September 2001 European Union directive on the promotion of renewable energies in the electricity sector, by ensuring that all the renewable energies defined in the directive fall under the scope of the EEG. However, payments under the Renewable Energy Sources Act are only compulsory if electricity is generated exclusively from renewable energies. EEG REGULATIONS IN DETAIL Obligation to purchase and transmit Grid operators must give immediate priority to connecting installations for the generation of electricity from renewable energies or from mine gas to their grid. In addition, they are obligated to purchase and transmit all electricity available from these installations. Installation operators bear the costs of connection. Grid operators take on the necessary costs for upgrading the grid. They may incorporate these costs into the charges for use of the grid. However, to ensure the necessary transparency, the grid upgrading costs must be declared. This obligation aims, in the interests of consumer protection, to prevent costs being shifted unfairly to the electricity consumer. The amendment creates incentives for operators of renewable energy installations to agree on the management of energy generation with grid operators. This is especially relevant for grid upgrading and stand-by energy. Such agreements may consider the occassionally fluctuating electricity supply in such a way that minimizes the costs for grid upgrades, reserves, and stand-by energy. To facilitate better integration of renewable energies into the electricity system, the EEG amendment requires that installations with a capacity of 500 kW or more are measured and recorded. Fees The EEG prescribes fixed tariffs which grid operators must pay for the feed-in of electricity generated from hydro, landfill gas, sewage treatment and mine gas, biomass, geothermal, wind, and solar sources. The minimum payments, (differentiated by energy source), vary depending on the size of the installation. Payments for wind energy also depend on the local wind conditions on site and whether the energy is generated on land or offshore. For 2005, fees under the new EEG ranged from 5.39 euro cents/kWh for electricity from wind energy (basic payment) and 6.65 euro cents / kWh for electricity from hydropower, to 59.53 euro cents / kWh for solar electricity from small façade systems. In principle the guaranteed payment period is 20 calendar years, for hydropower 15 or 30 years. The fee valid for the year of commissioning remains constant for this period, with the exception of wind energy. For wind-generated electricity, special regulations are laid down which deviate from the fixed fees for other energy sources. Two different rates are paid for electricity generated by wind: for an onshore wind park, a starting fee is paid for electricity produced for the first five years after commissioning. After these first five years, a lower basic fee is applied. The period of higher fees can be extended, however, according to the wind conditions at the site. Regardless of siting, the total payment period is restricted to 20 years. For offshore wind parks, starting fees are paid for 12 years. This period is extended for installations located further from the coastline and erected in deeper water. In order to take account of technological developments and of the economic efficiency of these developments, and to optimise the use of cost reduction potential

Climate Change Description:

On 1 August 2004, the new Renewable Energy Sources Act (EEG) entered into force, following its promulgation in the Federal Law Gazette on 31 July. According to the new law, the burden of providing balancing power for intermittent renewables generation is spread across all network companies. Generation from biomass plant will be paid for 20 years. The payment rates are EUR 0.115/kWh for a plant up to 150kWh, EUR 0.099/kWh for up to 500kWh and EUR 0.089/kWh for up to 5MW capacity. The rate fixed for new plants drops by 1.5% each year. A bonus is added to the basic payment rates for plants using fuel crops, or which use cogeneration or innovative technologies. The new law also provides support for biogas transported in the natural gas pipeline network, assuming it has the same heat equivalent of biogas fed into the pipeline at a separate point. Payment rates for small geothermal plant are increased in the new law. Plants up to 5MW get EUR 0.15/kWh, up to 10MW get EUR 0,14/kWh, and up to 20MW get EUR 0.0895/kWh. Beyond 20MW, generation is paid EUR 0.0716/kWh. Hydro plants get premium rates for as long as 30 years, although for larger plants (5MW-150MW), the period extends to only 15 years. Plants up to 500kW get EUR 0.0967/kWh, and plants up to 5MW get EUR 0.665/kWh, assuming certain environmental conditions are fulfilled. Electricity from larger hydro stations benefits only If the plant is modernised before the end of 2012 to increase capacity by at least 15%. Only electricity generated from increased capacity benefits from premium payments, and rates are lower than those for new plants. For wind energy generation, the period of time over which a bonus (EUR 0.032/kWh) is added to the standard rate of payment (EUR 0.055/kWh) is shortened. Further, the annual payment decrease for new projects is set at 2% - rather than the current 1.5%. Off-shore plants on line before the end of 2012 will get a standard rate of EUR 0.0619/kWh, and also a 12-year bonus of EUR 0.0291/kWh. The solar law that took effect at the start of 2004 has been folded into the new renewable energy law. The basic rate of payment for solar generated electricity is EUR 0.457/kWh. The aim of the Act is to increase the share of renewables in total electricity supply to at least 12.5% by 2010, and to at least 20% by 2020. To achieve this, improvements have been made to the framework conditions for feeding electricity from renewables into the grid and for transmitting and distributing this electricity.

This record is superseded by:2009 Amendment of the Renewable Energy Sources Act (EEG 2009)
This record supersedes:Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz EEG)

Last modified: Tue, 27 Sep 2016 15:59:45 CEST